Source: The Parnas Perspective
The explosive growth of AI infrastructure—driven by companies like OpenAI, Google, and Meta building massive data centers—is colliding with grid capacity in regions like Virginia and Texas that lack the generation and transmission infrastructure to support these loads. Utilities are already reporting strain, and the energy demands of training and running large language models are doubling every few months. The infrastructure gap will worsen without significant capital investment in power generation and grid modernization that currently isn't happening at scale. Continued AI growth without addressing energy constraints is becoming untenable. This bottleneck could force either massive government intervention, a slowdown in model development, or both.